Are you credit challenged?Looking for a mortgage in the Nashville area but afraid your credit is too bad to get one?
You probably have many questions: What kinds of loans are available to borrowers with bad credit? Will you be able to afford it? How can you improve your credit score? A qualified loan officer can help provide you with the necessary information about your situation because you still may be eligible for a home loan if your credit is less than perfect. Call your loan officer.
What can you do to improve your credit score?
Some Mortgage loan officers will work with you and your credit and use a what if simulator. It presents a dollar figure say $2500.00 and will run the scenario to tell you what you can do with the money to improve your credit. Then they will do what is known as a rapid re-score once you have the documentation verifying you have done what was suggested. It is possible to bring your credit score up and then put yourself in a qualifying position for a home loan. Here is a loan officer who can work with you.
Make sure that the information each of the three credit reporting bureaus has on you is consistent and up to date. Order a copy of your credit report about once a year, and dispute any inaccuracies.
Note: Theoretically, if a series of credit reports is requested on your behalf during a limited amount of time, your score goes down until time passes without any inquiries. Changes in the law though have made "consumer-originating" credit report requests not count so much. Also, a series of requests in relation to getting a mortgage or car loan is not treated the same as a number of credit card requests in a limited time. This is because the credit bureaus, and lenders, realize that people request their own credit reports to keep up with what's on them, and smart consumers shop around for the best mortgage and car loans.
Unsolicited credit card solicitations in the mail don't count against your credit report, so don't worry.
The two main components of your credit score are your payment history and the amounts you owe. Bankruptcy filings and foreclosures, which can stay on your credit report for as many as 10 years, can significantly lower your score. It's never a good idea to take on more credit than you can handle.
- Late payments work against you. It's extremely important to pay bills on time, even if it's only the monthly payment.
- Don't "max out" your credit lines. Since the size of the balance on your open accounts is a factor, lower balances are better.
Call Lee Barroll at his Nashville office: 615-243-1301 or email lee.barroll@fcmhomeloans.com for more information. Lee is based in Nashville, TN but can serve then entire state of Tennessee.
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